This blog post provides an overview of your different options for generating B2B leads if you’re a SaaS or Enterprise software company. It also highlights the costs and pros and cons of your different lead generation channels. We’ve collected data from the most reliable sources to try and answer the question of how much does a B2B lead cost. (All of our data sources are included at the bottom of this article).
What is a B2B lead?
One of the challenges of generating this post was that different sources define leads and lead quality very differently. Broadly speaking though, here’s how B2B leads are generally classified.
Marketing Qualified Lead (MQL) – a lead generated by marketing activity and has shown some level of interest in your company or services. This could include newsletter sign-ups, webinar attendees, demo or meeting requests.
Sales Accepted Lead (SAL) – Delta-v’s internal definition is a lead where a meeting has been set, the contact matches one of your buyer personas, they work for a company that matches your Ideal Customer Profile (ICP), and SDR has qualified the lead on high-level Need and Authority.
Sales Qualified Lead (SQL) / Opportunity – a lead where an Account Executive has met with the prospect for the initial meeting or demo, and has identified that they likely have the right authority, need, urgency and budget to make a purchase.
Read more: Qualifying sales opportunities
Comparing B2B lead sources
Referrals and network
Using referrals and your network involves tapping into your professional and personal connections to generate warm leads through recommendations. This is probably your best source for the warmest and highest quality leads, but your network only reaches so far.
Pros:
- High-quality leads with strong conversion potential.
- Warm introductions that build trust quickly.
- Low acquisition cost.
Cons:
- Your network only reaches so far, and then you will need to find ways of generating leads.
Lead quality:
- High
Cost:
- Low
Paid search (Google Ads) & paid social ads (LinkedIn, Facebook)
Most companies use Paid search (Google, Bing) and social ads (LinkedIn, Facebook) to generate inbound leads or MQLs. These channels offer access to broad audiences and allow for precise targeting, and are a very scalable option for businesses looking to grow their pipeline.
Pros:
- Quick to get up and running.
- Highly scalable.
- Advanced targeting options to reach specific audiences.
Cons:
- Competitive and expensive, especially in saturated markets.
- Lead quality is highly variable, often resulting in misaligned MQLs (the wrong people at the wrong companies).
Lead quality:
- Variable.
Cost:
- LinkedIn: Cost per opportunity: $3,162.89.
- Facebook: Cost per opportunity: $4,950.64.
- Google Ads: Adjusted cost per opportunity: ~$3,084 (based on conversion rates*).
*Conversion rates are assumed to be 29% for CPL to MQL and 13% for MQL to SQL, based on industry standards.
Sources:
- “Head-to-Head Comparison of the Performance of the Major Paid Social Channels.” Metadata.io
- “Google Ads Benchmarks for YOUR Industry [Updated!].” WordStream
- “Lead-to-MQL Conversion Rate Benchmarks by Industry & Channel.” First Page Sage
Account executives (AEs) sourcing their own leads
In this approach, Account Executives (AEs) handle the entire sales cycle, from prospecting to closing. Account Executives can generate high-quality leads since AEs are deeply familiar with the ideal customer profile and messaging and will focus on prospects that they feel have the highest probability of closing
Pros:
- High-quality leads due to personalised, tailored prospecting.
- AEs have direct control over the sales pipeline.
Cons:
- Expensive: Salespeople spend time prospecting instead of closing deals.
- It can create peaks and troughs in the pipeline, affecting consistency.
Lead quality:
- High
Cost:
- Cost per opportunity: $6,244 (plus AE-related expenses such as commissions).
Source:
- “Cost per Lead Metrics Exposed: An Insider’s Look at Sales Development.” B2B Rocket
Lead generation agencies (outbound email / LinkedIn automation)
Lead generation agencies use tools like email and LinkedIn automation to do bulk outbound outreach for your company. Most lead generation agencies provide high volume “spray and pray” outbound outreach that results in responses from prospects where only limited qualification has been done.
Pros:
- Highly scalable, making it easy to reach a large audience.
- Lead generation agencies can have a lower cost compared to other methods.
Cons:
- Often they apply a “spray and pray” approach, leading to very low lead quality.
- Unqualified “warm responses” are passed to your salespeople, who must still qualify them and determine whether these leads are worth speaking to.
Lead quality:
- Low
Cost:
- Cost per opportunity: $1,053–$5,038.
Sources:
- “How Much Does Lead Generation Cost? Here’s a Breakdown.” Instantly.ai
- “Lead-to-MQL Conversion Rate Benchmarks by Industry & Channel.” First Page Sage
Using SDRs to generate B2B pipeline
After trialling various lead generation methods, most companies will see mixed results. In particular, most companies we speak to have had bad experiences with lead generation agencies. These frustrations are generally caused by inconsistent lead quality and a lack of qualified opportunities.
Eventually, businesses realise that achieving a steady flow of high-quality meetings with the right decision-makers requires a dedicated team of sales development representatives focused on researching the right contacts at the right companies. These representatives then reach out to them using a mix of channels, including phone, email, and LinkedIn. At this stage, companies face a choice of whether to build an in-house SDR team or outsource the function.
Internal SDR team
Building an internal Sales Development Representative (SDR) team involves hiring, training, and equipping a team of junior salespeople to focus solely on generating qualified leads for your business. You get complete control over the process, allowing for alignment with your company’s goals and sales strategy.
Pros:
- Full ownership, control, and visibility of the lead generation process.
- It serves as a training ground for future Account Executives (AEs) and fosters internal talent development.
Cons:
- Requires a significant commitment of resources that can’t quickly be scaled down
- Costly and time-consuming to set up (it generally takes 6-9 months to set up a SDR team in-house)
- Requires a lengthy trial-and-error learning process
- People headaches due to having to hire, train and coach inexperienced sales people
Lead quality:
- High.
Cost:
- Cost per opportunity: $1,835*
*The cost per opportunity is calculated based on an annual SDR cost of $132173.08, with 72 leads generated per year, per SDR, equating to $1,835 per opportunity.
Read more: How much does a sales development team cost
Source:
- “How Much Does a Sales Development Team in the UK Really Cost?” Delta-v
Outsourced SDR Team
An outsourced SDR team involves partnering with an external provider to provide you with a dedicated SDR team for your business. When done right, you get most of the benefits of having an in-house team, but because you are working with an experienced partner you can get your SDR function up and running much faster, and it’s easier to scale up or down.
Pros:
- Quick and efficient setup.
- Access to expert knowledge and proven processes.
- Eliminates the challenges of managing people internally.
- It avoids the trial-and-error phase often required with in-house teams.
- Outsourced SDRs provide complete visibility and predictability on costs.
- Easily scalable, allowing for adjustments as business needs change.
Cons:
- Reduced control and visibility compared to an in-house team.
- Missed opportunity to develop internal talent for future roles like Account Executives (AEs).
Lead quality:
- High.
Cost:
- Cost per opportunity: $1,835 (similar to an internal team, but with a quicker and more efficient setup).
Source:
- “How Much Does a Sales Development Team in the UK Really Cost?” Delta-v
Lead generation agencies vs. outsourced SDR teams
When discussing lead generation, it’s crucial to distinguish between lead generation agencies and outsourced SDR teams, as they operate differently and can often be confused. Lead generation agencies typically focus on mass outreach through a single channel, such as LinkedIn or email, to generate warm responses. However, these responses are often unqualified, and agencies rarely convert them into meetings booked for your sales team. Their approach tends to rely on high-volume, poorly researched outreach, which can lead to inconsistent results.
In contrast, outsourced SDR teams take a more targeted and accountable approach. Rather than generating warm responses, they focus on delivering qualified meetings directly into your Account Executives’ calendars. The qualified meetings are achieved through multi-channel outreach—combining phone, email, and LinkedIn—to create personalised engagement with your ideal buyers. Additionally, outsourced SDR teams integrate seamlessly into your sales organisation, functioning as an extension of your team and providing predictable, high-quality outcomes without needing internal management.
Comparing different B2B lead sources
Channel |
Lead Quality |
Cost |
Pros |
Cons |
|---|---|---|---|---|
| Referrals & Networks | High | Low |
|
|
| Paid Search & Social Ads | Variable |
|
|
|
| Lead Generation Agencies | Low | $1,053–$5,038 per opportunity |
|
|
| Full Cycle AE-Driven Leads | High | $6,244 per opportunity |
|
|
| Internal SDR Team | High | $1,835 per opportunity |
|
|
| Outsourced SDR Team | High | $1,835 per opportunity |
|
|
Best lead quality:
- Referrals & Networks
- Full Cycle AE-Driven Leads
- Internal & External SDR Team
Lowest cost (based on cost per opportunity):
- Referrals & Networks (low)
- Internal SDR Team ($1,835)
- Outsourced SDR Team ($1,835)
Easiest to scale
- Paid Search & Social Ads
- Lead Generation Agencies (Email/LinkedIn Automation)
- Outsourced SDR Team
Finding the right fit for your pipeline
Every lead generation approach comes with unique benefits and challenges, and the right choice depends on your business goals, resources, and growth stage. Referrals and networks are excellent for low-cost, high-quality leads but are inherently limited in scale. Paid search and social ads offer the ability to scale quickly but often require significant budgets and can yield inconsistent results.
For companies aiming to prioritise efficiency and lead quality, SDR teams stand out as a consistent and reliable method for generating high-value opportunities. However, choosing between building an in-house team and outsourcing depends on your organisation’s needs.
Ultimately, the choice should align with your strategic priorities. Companies focused on rapid growth and streamlined operations often find outsourcing to be the most practical and cost-effective solution for building a predictable sales pipeline.
Data sources
- H., Amelia. “Cost per Lead Metrics Exposed: An Insider’s Look at Sales Development.” B2B Rocket, 2 Aug. 2023, https://www.b2brocket.ai/blog-posts/get-more-leads-for-less-money. Accessed 19 Nov. 2024.
- Nils. “How Much Does Lead Generation Cost? Here’s a Breakdown.” Instantly.ai, 8 Jan. 2024, https://instantly.ai/blog/lead-generation-cost/. Accessed 19 Nov. 2024.
- Raichshtain, Gilad. “B2B Sales Benchmark Research Finds Some Pipeline Surprises [Infographic].” Salesforce, 20 Nov. 2014, https://www.salesforce.com/blog/b2b-sales-benchmark-research-finds-some-pipeline-surprises-infographic/. Accessed 19 Nov. 2024.
- Bailyn, Evan. “Lead-to-MQL Conversion Rate Benchmarks by Industry & Channel.” First Page Sage, 23 Oct. 2024, https://firstpagesage.com/reports/lead-to-mql-conversion-rate-benchmarks-by-industry-channel-fc/. Accessed 19 Nov. 2024.
- Irvine, Mark. “Google Ads Benchmarks for YOUR Industry [Updated!].” WordStream, 13 May 2024, https://www.wordstream.com/blog/ws/2016/02/29/google-adwords-industry-benchmarks. Accessed 19 Nov. 2024.
- “Head-to-Head Comparison of the Performance of the Major Paid Social Channels.” Metadata.io, https://metadata.io/benchmark/head-to-head-comparison-of-the-performance-of-the-major-paid-social-channels/. Accessed 19 Nov. 2024.
- Gasson, Alex. “How Much Does a Sales Development Team in the UK Really Cost?” Delta-v, https://www.delta-v.co.za/how-much-does-an-inside-sales-team-cost/. Accessed 19 Nov. 2024.
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